GSM body welcomes Telecom Commission’s opinion on spectrum allocation

The GSM Association, the global body for GSM operators, has welcomed the Telecom Commission's decision to release more spectrum in each circle in the 1800 MHz band, to twice the level recommended by the telecom regulator.

''This decision is a first step in the right direction for the Indian people and economy, but is insufficient to meet the rising demand for mobile services over the long term and is still at a lower level than what is currently available,'' it said.

Last week, the Telecom Commission, the highest decision making body of the telecom ministry, opined that at least 10 MHz of airwaves be auctioned in each telecom circle, double of what was suggested by the sector regulator, under the proposed second generation (2G) spectrum auction, with the auction open to both new players and old players.

However, the GSMA is greatly concerned that the Telecom Commission has not made a decision to reduce the high reserve price levels recommended by the TRAI. If the prices remain the same, they present a major disincentive to future investment in India and will threaten the country's leadership in mobile technology. The GSMA also believes that spectrum usage charges should be kept at a minimum, it added.

''To ensure that India's spectrum policy meets the demands of society both now and in the future, we urgently call on the TRAI and the members of the Empowered Group of Ministers to listen to the advice given by business leaders, economists and the mobile industry, in setting a fair price for new spectrum, before making a final decision,'' said GSMA Director General Anne Bouverot.

Earlier, GSMA had stated the TRAI recommendations on spectrum allocation and pricing were not in line with international best practices, particularly as the government proposes to auction part of the available spectrum by end of August, and at an extraordinarily high price.

''While this (auction) may bring some additional money to the treasury in the short-term, it will stifle future investment and put at risk the promise of ''Broadband for All'', it had stated.

India was recently projected to become the second largest-mobile broadband market in the world by 2016, a prospect which is now in jeopardy, it said, adding, spectrum - the radio waves upon which mobile operators depend - is the oxygen that gives life to mobile services.